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The 1-year, 2-year, and 3-year spot rates for government bonds in Jamaica are 5.00, 5.50, and 6.50 respectively with corporate bonds laving a spot rate of 6.00, 6.50, and 7.50 respectively a Calculate the implied forward rates for government bonds (2marks) b. Calculate the implied forward rates for corporate bonds (marks) c. Suppose the spot rates for all corporate bonds increase by 1 percent, calculate the new implied forward rates for corporate bonds (4 marks) 2) Find the term structure of default probabilities over three years for the following example. (That is, calculate the implied forward rates for both the government and corporate bonds along with the annual marginal and cumulative probabilities). 1-year rate spot 2-year rate spot 3-year spot rate Bond 6.50 7.50 Government bonds 6.00 7.00 7.50 9.50 Corporate bonds